fundus
Distinguished member
- Joined
- May 31, 2015
- Posts
- 600
I know the general rule is that you're suppose to report all bitcoin transactions to the IRS, but if you're not making large transactions over 10K annually then would it still be advisable to answer yes on your tax return?
Most of us who use bitcoin to pay for meds are only purchasing enough to cover these costs. I'm not investing large sums into BTC, nor am I making many transactions, maybe 3 a year. Yet, from what I have read, the said rule is that if you purchase any amount of BTC you must answer yes on your tax form.
Nobody wants to be audited or caught lying about transactions, but at the same time who wants to be put on a list just because you bought and spent a few hundred dollars of BTC? I don't know about anyone else but I find this to be confounding problem every year I do a tax return, the question always comes up now "Did you purchase any Crypto-Currency in the past year"?
What is the right to do? I personally always say no, because the amount I purchase is so insignificant I don't think it will throw any red flags.
Most of us who use bitcoin to pay for meds are only purchasing enough to cover these costs. I'm not investing large sums into BTC, nor am I making many transactions, maybe 3 a year. Yet, from what I have read, the said rule is that if you purchase any amount of BTC you must answer yes on your tax form.
Nobody wants to be audited or caught lying about transactions, but at the same time who wants to be put on a list just because you bought and spent a few hundred dollars of BTC? I don't know about anyone else but I find this to be confounding problem every year I do a tax return, the question always comes up now "Did you purchase any Crypto-Currency in the past year"?
What is the right to do? I personally always say no, because the amount I purchase is so insignificant I don't think it will throw any red flags.